MiFID II: Industry pushes back on ‘no LEI: no trade, no admission’ – 14th June 2017
The financial services industry will continue efforts to persuade the European Securities and Markets Authority to soften its approach on the use of legal entity identifiers (LEIs) under the Markets in Financial Instruments Directive II. Firms and trading venues are disputing two issues. The first is the “no, LEI, no trade” rule spelled out in MiFID II’s regulatory technical standards for transaction reporting (RTS 22) which mandate the use of LEIs only in transaction reports. As of January 3, 2018 those firms subject to MiFID II transaction reporting obligations will be unable to execute a trade on behalf of a client who is eligible for a LEI and does not have one. The second bone of contention is the “no LEI, no admission” rule. That is found in RTS 23, which stipulates a LEI for the issuer of an instrument is required before that instrument is admitted to a trading venue.
Rachel Wolcott, Regulatory Intelligence